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Old 19.03.2015, 12:10
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Fixed Term Deposit in a Swiss Bank?


Hithere,
I'd like to place the money on my savingsaccount into a "safer" place, having said that I'm not keen on"funds/hedge..." or any other financial instrument that impliescertain risk.
I asked in my local cantonal Bank and they donot offer a "fixed term deposit" does anyone has any experience witha Swiss bank that offers "decent" fixed interest rates (more than 2%)for a fixed maturity date over a 12 month period , not subject to commissions?

Thanks for the advise!


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Old 19.03.2015, 13:26
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Re: Fixed Term Deposit in a Swiss Bank?

No- sorry.
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Old 19.03.2015, 13:36
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Re: Fixed Term Deposit in a Swiss Bank?

maybe bonds are what you should be looking at?
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Old 19.03.2015, 16:34
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Re: Fixed Term Deposit in a Swiss Bank?

2% per year after tax?.. AFAIK there is no institution which is offering such higher interest rates...
the closest you might get is the Postfinance e-deposito account...
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Old 19.03.2015, 17:08
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Re: Fixed Term Deposit in a Swiss Bank?

For two years the best you get is GRB Glarner Regionalbank 0.30%

https://www.vermoegens-partner.ch/de...nobligationen/

and do not to forget to pay taxes earlier and a bit more than needed:

http://www.zg.ch/behoerden/finanzdir...ltung/zinssatz

Thats a whooping 1% for Zug.
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Old 19.03.2015, 20:25
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Re: Fixed Term Deposit in a Swiss Bank?

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I'd like to place the money on my savingsaccount into a "safer" place, having said that I'm not keen on"funds/hedge..." or any other financial instrument that impliescertain risk. I asked in my local cantonal Bank and they donot offer a "fixed term deposit" does anyone has any experience witha Swiss bank that offers "decent" fixed interest rates (more than 2%)for a fixed maturity date over a 12 month period , not subject to commissions?
So how is a fixed term deposit safer than a savings account?
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Old 20.03.2015, 14:08
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So how is a fixed term deposit safer than a savings account?
well basically my current savings account gives 0.05% annual interest and at year end it charges some "fees", plus if i withdraw more than 50k during the year not interest is due.... so by safer i meant "fixed term deposit" and a "fixed interest" and not fees!

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maybe bonds are what you should be looking at?
THanks... not sure how that works though, so will have to check in my local bank!

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For two years the best you get is GRB Glarner Regionalbank 0.30%

https://www.vermoegens-partner.ch/de...nobligationen/

and do not to forget to pay taxes earlier and a bit more than needed:

http://www.zg.ch/behoerden/finanzdir...ltung/zinssatz

Thats a whooping 1% for Zug.

Thanks you! that is a good reference point 0.3% annual... i'll take that with me for my next visit to the bank! Thanks!!

Last edited by Ace1; 20.03.2015 at 17:11. Reason: Merging successive posts.
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Old 21.03.2015, 02:36
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Re: Fixed Term Deposit in a Swiss Bank?

Credit Agricole Financement has two interesting options:
- CA Libre Epargne paying 0.55 %
Regular savings account, with possibility to withdraw up to 20,000 CHF a month.
- CA Evolution, up to 1.20% but you need to block your money for 24 months and the reference rate might change.
https://www.ca-financements.ch/en/en...ngs-rates.html
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Old 21.03.2015, 08:40
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Re: Fixed Term Deposit in a Swiss Bank?

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well basically my current savings account gives 0.05% annual interest and at year end it charges some "fees", plus if i withdraw more than 50k during the year not interest is due.... so by safer i meant "fixed term deposit" and a "fixed interest" and not fees!
When people talk about safety they normally refer to the risk of loosing their money not about the fees they pay. That said there is a direct relationship between the return you earn on your money and the risk you take in achieving it. Keep in mind that people will not pay you more than the going rate unless there is additional risk involved - so make sure you understand that risk before you switch.
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Old 21.03.2015, 12:08
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Re: Fixed Term Deposit in a Swiss Bank?

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When people talk about safety they normally refer to the risk of loosing their money not about the fees they pay. That said there is a direct relationship between the return you earn on your money and the risk you take in achieving it. Keep in mind that people will not pay you more than the going rate unless there is additional risk involved - so make sure you understand that risk before you switch.
It's a good point you make, but it's not applicable in this context. When you receive interest on a savings or fixed deposit account, your investment is risk-free (protected by the FINMA up to 100000 CHF per bank customer per bank).

I understand the frustration of the OP though as many banks charge account management fees (5 - 20 CHF a month). If you combine that with a savings account (paying a low interest rate on your deposit), you could end losing money at the end of the year (even lower in real terms considering inflation). Might as well take the money and hide it under the mattress.
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Old 21.03.2015, 12:52
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Re: Fixed Term Deposit in a Swiss Bank?

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It's a good point you make, but it's not applicable in this context. When you receive interest on a savings or fixed deposit account, your investment is risk-free (protected by the FINMA up to 100000 CHF per bank customer per bank).

I understand the frustration of the OP though as many banks charge account management fees (5 - 20 CHF a month). If you combine that with a savings account (paying a low interest rate on your deposit), you could end losing money at the end of the year (even lower in real terms considering inflation). Might as well take the money and hide it under the mattress.
In the event of a Bank failure the law has been changed so Depositors funds can be seized just like in Cyprus.

What are FINMA's assets........ anyway I would not hold your breath. Risk free no longer exists for cash deposits.
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Old 21.03.2015, 13:13
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Re: Fixed Term Deposit in a Swiss Bank?

The depositor protection scheme requires all banks to insure their cash deposits.
The way it works, all banks are members of the scheme, and if one fails, the other have to cover the deposits.
The scheme is regulated by the FINMA.
http://www.esisuisse.ch/en/uebe_esi.htm

It's still federal law:
http://www.admin.ch/opc/de/classifie...ndex.html#a37h

If holding CHF in a Swiss bank savings account these days is not risk-free, I wonder what is.
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Old 21.03.2015, 13:33
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Re: Fixed Term Deposit in a Swiss Bank?

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The depositor protection scheme requires all banks to insure their cash deposits.
The way it works, all banks are members of the scheme, and if one fails, the other have to cover the deposits.
The scheme is regulated by the FINMA.
http://www.esisuisse.ch/en/uebe_esi.htm

It's still federal law:
http://www.admin.ch/opc/de/classifie...ndex.html#a37h

If holding CHF in a Swiss bank savings account these days is not risk-free, I wonder what is.
If one big Swiss banks was to fail, the others would fail too. The money to pay the depositors does not exist. Some of the cantons guarantee the Cantonal banks, again the money will come from the taxpayers who lost money in the bank

I don't think zero risk ever exists, perhaps you were asleep in 2007?
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Old 21.03.2015, 15:07
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Re: Fixed Term Deposit in a Swiss Bank?

Is Credit Agricole's Swiss branch too big to fail?
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Old 21.03.2015, 15:11
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Re: Fixed Term Deposit in a Swiss Bank?

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If one big Swiss banks was to fail, the others would fail too. The money to pay the depositors does not exist. Some of the cantons guarantee the Cantonal banks, again the money will come from the taxpayers who lost money in the bank
I don't think zero risk ever exists, perhaps you were asleep in 2007?
Your theory about a big Swiss bank failing... well is just a theory.
I was very much awake in 2007 and I don't recall any Swiss banks (or banks in Western Europe) defaulting on deposits.

Let's look at a real example. Remember Icesave? When it went insolvent, there were 343,306 retail depositors in the UK, the Netherlands and Belgium. They all got their money back through the depositor insurance scheme. The insurance is very real.
Where the money comes from is not relevant in this context. The bottom line, is that if I deposit 10,000 CHF in a bank that fails, I'm getting my 10,000 CHF back. I'm also very unlikely of paying 10,000 CHF extras on my tax bill next year. That's as risk-free as it gets.
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Old 21.03.2015, 15:20
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Re: Fixed Term Deposit in a Swiss Bank?

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Hithere,
I'd like to place the money on my savingsaccount into a "safer" place, having said that I'm not keen on"funds/hedge..." or any other financial instrument that impliescertain risk.
I asked in my local cantonal Bank and they donot offer a "fixed term deposit" does anyone has any experience witha Swiss bank that offers "decent" fixed interest rates (more than 2%)for a fixed maturity date over a 12 month period , not subject to commissions?

Thanks for the advise!
Do you have kids? You can earn 0.75% on up to 25k per child. This rate was 1.2% until recently with Postfinance.
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Old 21.03.2015, 15:31
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Re: Fixed Term Deposit in a Swiss Bank?

I had the opportunity to talk with a SNB director a while ago and we were discussing the 2008 credit crunch and the follow up of that. There was one thing he made very clear. He said there will never ever default a (big as in UBS, CS, Cantonal) bank in Switzerland as that would mean the end of business here. We were talking the bigger ones so I cannot comment on the smaller (or foreign) banks.

To be complete I must add to that a speech I saw of a SNB director 3 days before the scrapping of the exchange rate ceiling saying that they were certain the ceiling would last for a very long time to come.

nothing is certain in life I am afraid..
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Old 21.03.2015, 15:32
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Re: Fixed Term Deposit in a Swiss Bank?

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It's a good point you make, but it's not applicable in this context. When you receive interest on a savings or fixed deposit account, your investment is risk-free (protected by the FINMA up to 100000 CHF per bank customer per bank).
Well I would expect that the risk in a getting the higher rate in fixed deposit is the lock in and the cost of breaking it...

As for the 100K guarantee, it is up to 100K and capped at 6b per bank which in reality probably means you'll get a lot less than 100K. I seem to remember the last this happened customers ended up with about 30K each.
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Old 21.03.2015, 15:42
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Re: Fixed Term Deposit in a Swiss Bank?

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Well I would expect that the risk in a getting the higher rate in fixed deposit is the lock in and the cost of breaking it...

As for the 100K guarantee, it is up to 100K and capped at 6b per bank which in reality probably means you'll get a lot less than 100K. I seem to remember the last this happened customers ended up with about 30K each.
Better to keep it in a safe deposit box. I heard that the smallest ones hold 1mill CHFs in 2,000 Franc notes.
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Old 21.03.2015, 15:48
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Re: Fixed Term Deposit in a Swiss Bank?

Well 2000 chf notes don't exist for starters .
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